Husforsikringen dækker fugtskaden.

Because Danish, like German, very often makes compound nouns by joining words together.

• hus = house/home
• forsikring = insurance
• husforsikring = home insurance / house insurance

Then the definite ending is added:

• husforsikring = home insurance
• husforsikringen = the home insurance

So Danish prefers one long word where English often uses several words.

The ending -en is the definite article suffix, meaning the.

In Danish, instead of usually putting a separate word like the in front of the noun, you often attach definiteness to the end of the noun itself.

So:

• en husforsikring = a home insurance policy
• husforsikringen = the home insurance policy

This happens because forsikring is a common-gender noun, and common-gender nouns often take -en in the singular definite form.

Because in Danish, the definite article is usually attached to the noun as a suffix.

So instead of:

• English: the insurance
• Danish: forsikringen

And instead of:

• English: the damage
• Danish: skaden

In this sentence both nouns are definite, so both get a definite ending:

• husforsikringen
• fugtskaden

A separate word like den is usually not used unless there is an adjective or some special structure, for example:

• den store skade = the big damage

But with just the noun alone, Danish normally uses the suffix.

The base form is husforsikring.

You can break it down like this:

• hus = house/home
• forsikring = insurance
• husforsikring = home insurance
• husforsikringen = the home insurance

So the dictionary form you would usually look up is husforsikring.

Dækker is the present tense form of the verb dække.

• dække = to cover
• dækker = covers / is covering

In Danish, the present tense often ends in -r:

• bo → bor
• købe → køber
• dække → dækker

So Husforsikringen dækker fugtskaden has a normal present-tense verb: The home insurance covers the moisture damage.

Because Danish is a V2 language in main clauses. That means the finite verb usually comes in second position.

In this sentence:

• Husforsikringen = first element
• dækker = second element
• fugtskaden = object

So the order is:

• Subject + verb + object

This is very normal in Danish.

And if you moved another element to the front, the verb would still stay second:

• I dag dækker husforsikringen fugtskaden.
  Today the home insurance covers the moisture damage.

So this sentence follows the standard Danish main-clause pattern.

It is another compound noun:

• fugt = moisture/damp
• skade = damage
• fugtskade = moisture damage / damp damage
• fugtskaden = the moisture damage

So just like husforsikringen, it is built in two steps:

1. make a compound noun
2. add the definite ending

Because both are singular definite nouns of common gender.

• husforsikring → husforsikringen
• fugtskade → fugtskaden

In Danish, many nouns are either:

• common gender: often take en as indefinite article and -en in the definite singular
• neuter gender: often take et as indefinite article and -et in the definite singular

Here, both nouns are common gender nouns, so they both use -en in the definite singular.

Usually, you learn the gender together with the noun.

For example:

• en forsikring
• en skade

That tells you they are common gender nouns. When they become singular definite, they normally take -en:

• forsikringen
• skaden

There is not always a reliable way to guess gender from meaning alone, so it is best to memorize nouns with their article:

• en forsikring
• en skade
• et hus

Notice that hus itself is neuter (et hus), but in the compound husforsikring, the gender comes from the last part of the compound, forsikring, not from hus.

Because in Danish compounds, the last element usually determines the grammatical gender.

So:

• et hus = a house
• en forsikring = an insurance policy

The full compound is based on forsikring, so:

• en husforsikring
• husforsikringen

This is a very important rule for Danish compound nouns.

Grammatically, yes. That would mean:

• A home insurance policy covers a moisture damage / this kind of damage

But it changes the meaning slightly. Your original sentence uses definite nouns:

• Husforsikringen dækker fugtskaden.
• The home insurance covers the moisture damage.

That sounds like a specific insurance policy and a specific damage case.

Using en would make it more general or less specific.

A rough guide:

• dækker sounds approximately like DEK-er, but with a more open vowel than English e
• the æ is somewhat like the vowel in English cat for many speakers, though not exactly the same

A few pronunciation notes:

• æ is a very common Danish vowel
• the kk shows a hard k sound
• the final -er in Danish is often pronounced quite lightly

So dækker is not pronounced like English day-ker. It is closer to dek-er.

Yes. It is short, clear, and natural.

It follows standard Danish structure:

• subject: Husforsikringen
• verb: dækker
• object: fugtskaden

It is the kind of sentence you could easily see in insurance information, customer service, or a discussion of what a policy covers.